Oxford Biomedica plc, a gene and cell therapy group, has agreed to an extension and update to its commercial supply Agreement with Novartis for the manufacture of lentiviral vectors for several Novartis CAR-T products.
 
Oxford Biomedica initially licensed its LentiVector platform to Novartis in the field of CAR-T in October 2014, followed by a 5-year commercial supply agreement signed by Oxford Biomedica and Novartis in December 2019.
 
Under the terms of the updated agreement, the parties have extended the terms of the commercial supply agreement to the end of 2028 and Oxford Biomedica has regained the rights to its LentiVector platform relating to three CAR-T targets, including CD19 targeted therapies. The group now has the right to work with potential pharmaceutical and biotech partners other than Novartis across all CAR-T targets.
 
In addition, under the terms of the new agreement Novartis has been granted additional flexibility in ordering of GMP batches across Oxford Biomedica’s multiple GMP  facilities but will no longer have a minimum order commitment. This is expected to result in a mid-single digit £ million reduction in previously guided FY21 revenues. The group continues to work on multiple CAR-T programs with Novartis, including Kymriah, as well as a broad number of development opportunities on which the group earns manufacturing revenues, process development fees and royalties on net sales.

Statement from John Dawson, CEO of Oxford Biomedica

John Dawson, chief executive officer of Oxford Biomedica, said, “This news today is an example of Oxford Biomedica seeking to adapt to customer needs over time, our strength as a long-term partner and our goal to unlock value and build scale across the Group. 
 
“We have enjoyed a strategic partnership with Novartis since 2014 and are excited to announce this updated supply agreement which provides both companies with greater flexibility in GMP supply of vector for Kymriah and other pipeline products and allows us to react to the rapidly growing dynamics of the commercial CAR-T sector. 
 
“In return, we are very pleased to have regained the ability to license our LentiVector platform across all CAR-T targets, maximizing our ability to serve a larger proportion of the growing market for lentiviral vectors.”